San Francisco Estate, Business, and Investor Immigration Law Blog

Pursuant to California Probate Code Section 21700 - Contract to Make a Will - a person is allowed to establish an agreement between the decedent and the child, friend, or caretaker concerning the decedent leaving them assets. However, there are some hurdles. The California Supreme Court has noted that upon a person's death, "the temptation is strong for those who are so inclined, to fabricate evidence giving color to a claim that the parties entered into... an oral arrangement." Notten v. Mensing , (1935) 3 Cal.2d 469, 477.

Under 21700, proof of an oral contract must be clear and convincing evidence of an agreement between the decedent and the claimant or a promise by the decedent to the claimant that is enforceable in equity.

Obamacare's 3.8% surtax on investment income applies to individuals making more than $200,000 adjusted annual income.

With top capital gains tax rates having recently increased from 15% to 20% for individuals with incomes of more $400,000 per year, investors may now be facing a 23.8% tax on net investment income.

This is a fifty-eight percent increase from 2012 tax rates.

A Charitable Remainder Trust may useful in minimizing the impact of this surtax using property that has appreciated.

Once the property has been transferred to the trust, it is sold and the proceeds paid out in annual payments of at least 5% of the trust's initial value.

The value of the trust at the Trustor's death then goes to the selected charity.

The tax advantage is that the trust can sell the appreciated property without incurring the 3.8% Obamacare tax. The beneficiaries are still subject to capital gains owed, but the smaller payments taxed will be spread over a longer period of time.

An E-2 investment is an investor placing capital at risk with the objective of generating a profit. The investment may be starting a new business, or purchasing a pre-existing business. In both cases, the capital invested must be substantial.